5. [Portfolio Expected Rate of Return and Risk Measures] Three venture investments previously made by BKAngel, a venture investor, achieved the following outcomes for the year just completed:

Venture Initial Cash Ending

Opportunity Value Flow Value

Ven1 $300,000 $75,000 $600,000

Ven2 $400,000 $50,000 $300,000

Ven3 $300,000 -$60,000 $360,000

6. [Portfolio Expected Rate of Return and Risk Measures] Refer to Problem 5. Assume that BKAngels initial investments in the three ventures had been Venture 1 = $500,000, Venture 2 = $300,000, and Venture 3 $200,000 with each investment having achieved the same cash flows and ending values shown in Problem 5.

A. Calculate the percentage rate of return for each of the venture investments.

B. Calculate an expected rate of return for a portfolio of these three venture investments weighted by each ventures investment share of a total $1,000,000 investment.

C. Calculate the variance, standard deviation, and coefficient of variation of the rates of returns for the portfolio investment.